Common size income statements make it easier to compare firms ____________.
A)that use different inventory valuation methods (FIFO vs.LIFO)
B)in different industries
C)with different degree of leverage
D)of different sizes
E)none of the above

Question

Quizplus · Accepted Answer

Common size income statements express each line item as a percentage of sales, allowing for easy comparison of firms of different sizes by normalizing financial data.

Common Size Income Statements Make It Easier to Compare Firms